Obayashi Corporation · TSE:1802
Obayashi — 2Q FY2010 Earnings Presentation
37 slides from Obayashi's earnings presentation, Nov 11, 2010
Slide 1: Financial Results for 2Q/FY2010 (cumulative) and Outlook for Full FY2010
Investor Presentation Financial Results for 2Q/FY2010 (cumulative) and Outlook for Full FY2010 November 11, 2010
Slide 2: Disclaimer
Disclaimer This investor presentation, an English translation of the presentation made at the investor meeting at Obayashi Corporation (Tokyo, Japan) on November 11, 2010 as a digest of Obayashi Corporation's news release "Summary of the 2 nd Quarter (cumulative) Financial Results for FY2010 ending
Slide 3: Financial Results for 2Q/FY2010 (Cumulative)
Financial Results for 2Q/FY2010 (Cumulative)
Slide 4: Overview of Financial Results
(Consolidated) Overview of Financial Results (100 million yen) Increase 2Q/FY2009 2Q/FY2010 (decrease) Net sales 7,004 5,355 (1,648) Gross profit 448 466 17 Operating income 58 82 24 Ordinary income 76 74 (2) Net income 16 49 33 4
Slide 5: Net Sales
(Consolidated) Net Sales (100 million yen) After consolidation After consolidation 8,000 8,000 7,004 5,355 Eliminations (498) Real estate Subsidiaries business and other 1,887 6,000 6,000 242 Eliminations Real estate (458) business Subsidiaries and other 1,522 309 4,000 4,000 Obayashi Corporation Co
Slide 6: Gross Profit
(Consolidated) Gross Profit (100 million yen) After consolidation After consolidation 448 466 500 Eliminations (9) 500 Realization of unrealized profit +3 Real estate Real estate business Subsidiaries business and other 400 and other 400 Subsidiaries 54 107 83 134 300 300 Obayashi Construction Obaya
Slide 7: General and Administrative Expenses
(Consolidated) General and Administrative Expenses (100 million yen) 390 384 400 400 (6) 350 350 Subsidiaries Subsidiaries 97 Overheads 85 Overheads (4.0)% 300 300 161 155 (12) 250 250 (12.8)% 200 200 Obayashi Obayashi Corporation Corporation (non-consolidated) +0 150 (non-consolidated) 150 Personne
Slide 8: Causes of Variance in Operating Income
(Consolidated) Causes of Variance in Operating Income (100 million yen) Decrease in net sales (100) 100 Increase in gross margin on Decrease in general and completed construction contracts +88 administrative expenses +6 90 80 70 +29 +24 Real estate 60 business (11) and other 50 Construction 40 busin
Slide 9: Non-operating Income and Expenses
(Consolidated) Non-operating Income and Expenses (100 million yen) 50 39 50 50 Other 11 Other 3 30 30 Dividends Dividends Non-operating income 30 income income 30 10 10 Interest income 8 Interest income 5 Interest Interest △ 10 -10 expenses (19) expenses (19) Foreign exchange losses Non-operating (8
Slide 10: Extraordinary Income and Loss
(Consolidated) Extraordinary Income and Loss (100 million yen) 15 4 20 20 Other 1 10 10 Gain on sales of Extraordinary investment securities income 14 Other 4 00 △ -10 10 Impairment loss (22) Loss on valuation of △ -20 20 investment securities (37) Mediation settlement Extraordinary △ -30 30 (12) lo
Slide 11: Net Income
(Consolidated) Net Income (100 million yen) 50 Increase in operating Non-operating balance (26) income +24 40 30 +33 49 20 10 16 Extraordinary balance (3) 0 Decrease in tax expenses +27 2Q/FY2009 Decrease in minority interests in 2Q/FY2010 income +11 11
Slide 12: Major Changes in Balance Sheets
(Consolidated) Major Changes in Balance Sheets 1 (100 million yen) Increase March 31, 2009 March 31 , 2010 (decrease) Real estate for sale 549 442 (106) Buildings and structures 662 812 150 Land 2,407 2,621 213 Main reasons for decrease in “real estate for sale” and increase in “buildings and struct
Slide 13: Main reason for decrease in investment securities
(Consolidated) Major Changes in Balance Sheets 2 (100 million yen) Increase March 31, 20 10 September 30 , 2010 (decrease) Investment securities 2,965 2,640 (325) Main reason for decrease in “investment securities” ・Decrease in valuation gain by 29.3 billion yen (non-consolidated) The Nikkei Stock A
Slide 14: Transition of Interest-bearing Liabilities
(Consolidated) Transition of Interest-bearing Liabilities Bonds +150 (100 million yen) PFI, etc. (30) PFI, etc. +116 Other (43) 4,500 3,910 3,986 4,100 +113 4,000 +76 900 3,500 PFI, etc 813 783 3,000 Bonds 300 450 2,500 Long-term loans 2,000 payable 1,316 1,596 1,500 3,097 3,203 3,200 490 1,000 CP 5
Slide 15: Cash Flows
(Consolidated) Cash Flows (100 million yen) 400 300 Positive 200 Acquisition of land & buildings for rent (office buildings), etc. 100 Financing activities 39 Operating activities 24 0 Operating activities -100 (168) Negative Investing activities Investing activities -200 (323) (68) Financing activi
Slide 16: Forecasts for FY2010 and Issues & Measures for the Company
Forecasts for FY2010 and Issues & Measures for the Company
Slide 17: New forecast for FY2010e
(Consolidated) New forecast for FY2010e (100 million yen) FY2010e FY2010e New Increase forecast forecast (decrease) (announced in May) Net sales 13,100 12,300 (800) Gross profit 1,020 1,000 (20) Operating income 265 250 (15) Ordinary income 280 250 (30) Net income 190 150 (40) 17
Slide 18: Forecast for Net Sales
(Consolidated) Forecast for Net Sales After consolidation After consolidation After consolidation After consolidation 16,824 13,414 13,100 12,300 (100 million yen) 20,000 Eliminations (800) (1,302) Real estate business and other Subsidiaries 658 15,000 4,953 (1,005) (1,143) (1,104) 466 800 3,844 3,7
Slide 19: (Non-Consolidated) Forecast for Net Sales
(Non-Consolidated) Forecast for Net Sales 13,173 10,576 10,450 9,950 (100 million yen) (500) 15,000 Real estate business and other Overseas civil 285 engineering 1,722 Domestic civil engineering 1,809 203 450 ＋50 10,000 469 500 163 700 Overseas 1,994 550 building 2,100 (150) construction 172 1,900 D
Slide 20: Forecast for Gross Profit and Operating Income
(Consolidated) Forecast for Gross Profit and Operating Income Gross profit (100 million yen) 1,214 1,069 1,068 145 1,020 1,000 1,500 Real estate business and other 1,200 195 155 301 180 180 900 Construction business 913 1,019 840 820 600 767 Operating income 300 17 475 286 273 265 250 128 0 -700 (62
Slide 21: (Non-Consolidated) Forecast for Gross Profit
(Non-Consolidated) Forecast for Gross Profit (100 million yen) 972 775 721 (121) 780 780 1,200 Real estate business and other 1,000 136 800 Civil engineering 120 110 253 230 100 600 230 144 220 99 Building 400 construction 200 582 445 477 429 440 440 0 -400 (521) -600 (29) FY2006 FY2007 FY2008 FY200
Slide 22: Transitions of Profit Ratio of Completed Construction Contracts
(Non-Consolidated) Transitions of Profit Ratio of Completed Construction Contracts （％） Civil engineering 10.0 9.4 9.4 Civil engineering & building construction total 5.1 5.4 7.1 6.7 4.4 5.0 Building 6.3 4.8 construction 4.1 6.0 4.1 3.2 0.0 -0.9 -5.0 -21.1 -10.0 FY2006 FY2007 FY2008 FY2009 FY 2010e R
Slide 23: Result for Orders Received for 2Q/2010 (cumulative)
(Consolidated) Result for Orders Received for 2Q/2010(cumulative) After consolidation After consolidation After consolidation After consolidation 8,375 5,568 5,550 4,992 (100 million yen) 10,000 Eliminations (557) (598) Real estate business Subsidiaries and other 8,000 193 2,028 (830) 6,000 (300) (4
Slide 24: (Non-consolidated) Result for Orders Received for 2Q/2010
(Non-consolidated) Result for Orders Received for 2Q/2010(cumulative) 6,945 4,197 4,350 3,998 (100 million yen) (351) Real estate 8,000 business and other 114 Overseas civil engineering 598 Domestic civil 6,000 919 engineering Overseas (8) building construction (179) 99 300 200 120 (79) 4,000 Domest
Slide 25: Forecast for Orders Received for Full Year
(Consolidated) Forecast for Orders Received for Full Year After consolidation After consolidation After consolidation After consolidation 14,945 12,823 13,950 13,500 (100 million yen) 18,000 Eliminations (450) (1,251) 16,000 Real estate business and other (850) Subsidiaries (1,485) (850) 14,000 561
Slide 26: (Non-consolidated) Forecast for Orders Received in Full Year
(Non-consolidated) Forecast for Orders Received in Full Year 11,742 10,210 11,400 10,900 Real estate business and other (500) (100 million yen) 12,000 202 450 Overseas civil 500 engineering 1,158 204 500 ＋50 10,000 500 303 2,000 Domestic civil 2,070 1,800 engineering 1,782 8,000 (12) 200 300 (200) 4
Slide 27: Management Issues and Measures to Be Taken (1)
Management Issues and Measures to Be Taken (1) 1. Ensure appropriate profit from construction business and necessary amount of orders received ⇒ Continue to emphasize profitability when accepting orders 2. Adapt to changing business environment • Trend of construction investment in the manufacturing
Slide 28: Construction investment forecast and overseas involvement
Source “Quarterly Outlook of Construction and Macro ◎Construction investment forecast Economy” Research Institute of Construction and Economy. Oct 21, 2010. (FY2009) (FY2011) Private non-residential buildings 7.8 trillion yen ⇒ 8.5 trillion yen Private civil engineering 3.8 trillion yen ⇒ 4.2 trilli
Slide 29: Management Issues and Measures to Be Taken (2)
Management Issues and Measures to Be Taken (2) 3. Focus on growth opportunities ◇Focus on environment-related fields ◇Focus on renovation projects 4. Technical development targeted at client needs ◇Provide optimum solution using environment-related technology ◇Further commercialize advanced earthqua
Slide 30: Technical development targeted at client needs
◎Technical development targeted at client needs Technology Research Institute’s new main building and lab facility completed in September 2010 Facility that achieved “carbon- neutral” the first in Japan < New main building, Techno Station > “A building that doesn’t shake during earthquakes,” the fir
Slide 31: Environment-related Technology
—Environment-related Technology— Low-Carbon (CO2 reduction) technology Purification of polluted soil or underground water ☆ Low-Carbon Concrete ☆ “RCUBIC MINI Soil Remediation System” ☆ Personal air conditioning “O-TASC” downsized purification facility that can ☆ Demoliation Method “QB Cutoff be use
Slide 32: Dividends
Dividends No changes in basic policies regarding profit distribution Sustain stable dividend payouts over the long term Provide returns in line with business performance Dividends for FY2010e will be 8 yen per share (forecast) (interim dividends will be 4 yen) 32 ＯＢＡＹＡＳＨＩ ＣＯＲＰＯＲＡＴＩＯＮ
Slide 33: Medium Term Business Plan 2008: Grow by Leveraging our Technology
Medium Term Business Plan 2008 “Grow by Leveraging our Technology” TARGET Consolidated FY2012 Ordinary Profit* JPY 56 Billion *Profit before extra-ordinary profits/losses and income taxes The Obayashi Group will provide society with safety and security in everyday life through its construction and c
Slide 34: Forecasts for Non-operating income and Expenses
(Consolidated) Forecasts for Non-operating income and Expenses (100 million yen) After consolidation 100 Subsidiaries 4 Dividends from group Eliminations subsidiaries, etc 75 (19) Obayashi Non-operating 50 Corporation (non-consolidated) income 90 75 25 0 Obayashi -25 Corporation (non-consolidated) N
Slide 35: Transition of Ordinary Income
(Consolidated) Transition of Ordinary Income 600 (100 million yen) Consolidated 500 533 Non- 400 Consolidated 436 300 323 318 280 250 200 216 235 220 100 177 0 (596) (677) -700 FY2006 FY2007 FY2008 FY2009 FY 2010e Result Result Result Result Forecast New forecast (announced in May) 35
Slide 36: Forecast for Extraordinary income and loss
(Consolidated) Forecast for Extraordinary income and loss (100 million yen) Mainly: 60 •Gain on sales of After consolidation investment securities 40 Subsidiaries 5 Obayashi 20 Corporation Extraordinary 35 (non-consolidated) income 0 30 Obayashi -20 Corporation (non-consolidated) Extraordinary -40 (
Slide 37: Transition of Net Income
(Consolidated) Transition of Net Income (100 million yen) 500 400 Consolidated 406 300 Non- Consolidated 185 200 294 190 109 150 100 150 140 110 77 0 -100 (527) (533) -600 FY2006 FY2007 FY2008 FY2009 FY2010e Result Result Result Result Forecast New forecast (announced in May) 37